When schoolteacher Joshua Ogden decided to buy property in the remote B.C. town of Kyuquot, he faced an inconvenient dilemma.

Ogden learned banks were skeptical about providing mortgages to buy property in the tiny community on Vancouver Island乌鸦传媒檚 northwest coast. Banks in Campbell River told him a regular mortgage was impossible. Private lenders, meanwhile, would require a 35 per cent down-payment with a minimum seven per cent interest rate.

Independent mortgage brokers pointed out that no bank or financial institution will lend to a place with limited accessibility. Kyuquot is accessible only by boat or float-plane.

Matt Bruining, manager of Royal Bank of Canada乌鸦传媒檚 Campbell River branch confirmed Ogden乌鸦传媒檚 story.

He said that while the lending policy for the bank is standard throughout the country, there are external factors to be considered if the property is not in a 乌鸦传媒渟ervice area.乌鸦传媒� Properties that lack easy access to fire-safety services, are examples of what the bank considers a 乌鸦传媒渘on-service乌鸦传媒� area. Insurance, and the cost of maintaining the property are also other criteria that weigh in on the lending decision.

So when a person with a good credit score can乌鸦传媒檛 get a mortgage for a property in such areas, Bruining said the bank is 乌鸦传媒渘ot declining people, but it is declining the property.乌鸦传媒�

Ed Handja, is a realtor with BC Oceanfront Properties. In his 25-year career, he has sold six properties in Kyuquot and considers it a 乌鸦传媒渓imited market,乌鸦传媒� meaning properties there can typically take anywhere from two months to two years to sell. Most banks consider that a financial risk not worth taking.

乌鸦传媒淏anks aren乌鸦传媒檛 really comfortable because they do know enough that if they end up taking a property in foreclosure situation, it could take couple of months or years for them to sell it and they don乌鸦传媒檛 want to get themselves into that situation,乌鸦传媒� said Handja.

Kyuquot is a vibrant community for four months of the year. However, at other times, outside of the Kyuquot Checleseht First Nation treaty land, it is almost a ghost town. On Walters Island where Ogden lives, most homes are owned by summer residents who use it as a holiday home.

Despite that, Ogden said renting was not easy either.

乌鸦传媒淥f the properties outside Kyuquot Checleseht First Nation treaty land, majority sit vacant for much of the year 乌鸦传媒� unavailable to rent or purchase,乌鸦传媒� said Ogden.

Home owners are not comfortable giving out their properties for rent. Donna Holmes Vernon, a home owner on Walters Island who rented her place three times in the past said, landlords who don乌鸦传媒檛 live in Kyuquot face 乌鸦传媒渟erious limitations乌鸦传媒� when it came to maintenance.

First of all, there was always damage done, said Vernon. Secondly, insurance prices and hydro rates on Kyuquot are exorbitantly high.

A lot of 乌鸦传媒渙utsiders乌鸦传媒� have bought property in Kyuquot because they had the money to pay up front said Eric Gorbman, who resides and runs a restaurant on Walters Island. Twenty years ago when Gorbman, an American, bought his property, locals were horrified, he said.

But the trend continued for a while when Kyuquot乌鸦传媒檚 real estate was in demand by the 乌鸦传媒渕illion-dollar club乌鸦传媒� of Americans, Vancouver-based tycoons, and out-of-province buyers who 乌鸦传媒済obbled乌鸦传媒� up property when it became available.

However, after the 2008 financial crisis in U.S., demand decreased. The owner of one of the last houses sold on Walters Island had to lower his price to the point where he literally had to give it away, said Gorbman.

The dilemma is always going to be a 乌鸦传媒渃ircular issue,乌鸦传媒� said Gorbman and added that since locals cannot afford to buy houses, outsiders will continue to buy houses, most of which will be left vacant when they乌鸦传媒檙e not around. He said this is something the provincial government needs to figure out.

乌鸦传媒淲hat Kyuquot needs to survive are young families, who can be assets to the community. But if they can乌鸦传媒檛 find places to live, it乌鸦传媒檚 a different thing altogether.乌鸦传媒�